Investing.com - The euro was little changed against the dollar on Thursday as investors remained cautious ahead of the European Central Bank's policy meeting later in the day, amid speculation that the bank could tighten monetary policy.
EUR/USD was trading at 1.3731, moving off the previous session's lows of 1.3706.
The pair was likely to find support at 1.3685 and resistance at 1.3780.
The ECB was expected to hold off cutting rates but was expected to take other steps to tighten policy, amid ongoing concerns over the subdued inflation outlook for the euro area.
Figures released last Friday showed the annual rate of inflation in the euro area was unchanged at 0.8% in February, well below the ECB's target of just under 2.0%.
Data on Wednesday showing that euro zone private sector activity grew more rapidly than initially estimated in February, expanding at the fastest pace since June 2011 eased pressure on the bank to cut rates.
A separate report showed that euro zone retail sales rose more strongly than forecast in January.
The euro was steady against the pound, with EUR/GBP inching up 0.05% to 0.8217.
The euro pushed higher against the yen, with EUR/JPY advancing 0.46% to 141.12, extending its pullback from a trough of 138.77 reached last week as concerns over the crisis in Ukraine weighed.
Elsewhere, the dollar was also higher against the yen, with USD/JPY up 0.45% to 102.75.
